Global law firm
DLA Piper
will shift into five upper floors of Sydney icon No. 1 Martin Place in one of the largest leasing deals in the city this year.

The law firm will take up about 6000 square metres in mid-2014 as it looks to reposition with a Martin Place address in the city’s financial core.

Lawyers are targeting the area, with
Ashurst
also moving out of Grosvenor Place to the redeveloped “money box" at No. 5 Martin Place.

DLA Piper occupies about 8300 square metres across seven floors in the Dexus Property Group and Perron Investments-owned 201 Elizabeth Street. The owners are considering leasing strategies for the space to be vacated, and parts of that tower could be upgraded.

The law firm is thought to have considered taking space in Grosvenor Place or staying put. But it is making its move part of an overall thrust into the ­Australian market.

Andrew Darwin
, managing partner Australia at DLA Piper, said the ­relocation highlighted the importance of Australia in general, and Sydney in particular, to the firm.

“Sydney is one of DLA Piper’s flagship offices and having premises that are commensurate with our market positioning is critical. This move puts us in the heart of the CBD’s business and financial community and is one of a number of initiatives to develop DLA Piper’s Australian operations," he said.

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For
Charter Hall
, which manages both the syndicate and the wholesale office trust that own No. 1 Martin Place, winning the law firm may spark a broader revamp of its city holdings.

Charter Hall is rumoured to be considering space in the tower for its own headquarters, partly as the property fund manager is on a growth spurt. By vacating its existing offices, it could allow work to start on its flagship Sydney redevelopment, 333 George Street.

“There has been significant leasing activity in the Martin Place precinct over the past 18 months as tenants ­refocus on the considerable benefits of operating out of high-quality buildings, located in the heart of the CBD, ­surrounded by customers and clients," he said.

Although many new office projects have been developed outside the city’s traditional core, projects by Charter Hall, Commonwealth Property Office Fund, Pembroke Real Estate and, eventually, Brookfield’s Wynayrd revamp, could see a Martin Place renaissance.

No. 1 Martin Place’s leasing is being managed by CBRE’s James Patterson and Jenine Cranston, and Greg Fisher and Mark Semple of DTZ.

The parties have kept the lease terms under wraps but the deal is thought to show around $840 per square metre on a net basis, given the floors are at the top of the 24-level A-grade office tower. Incentives are believed to be about 30 per cent and the parties noted the fine balance in the city’s leasing market.